What Is Tracking Error and What Is Active Risk? скачать в хорошем качестве

What Is Tracking Error and What Is Active Risk?

If you are going to invest with an active manager you might want to determine how active your manager actually is. You definitely don't want to pay active fees for a closet indexer. Unlike active share (which measures how much holding weights differ), tracking error measures how much your manager's returns differ from the returns of the benchmark. To complicate matters, you will find two different calculations for tracking error. One measures how much the return deviations deviate. The other measures how much the returns deviate. I am not advocating one measure over the other. However, I am advocating that you know which measure is being used and understand the difference between what the two are measuring. The latter is sometimes called active risk instead of tracking error. #activemanagement #activeinvesting #equitymarkets #marketcommentary #equities #investing #indexinvesting #stockmarket #financialadvice #cfainstitute #marketanalysis Related Videos: https://vimeo.com/498058701